Thailand’s SET Index closed at 1,598.11 points, decreased 26.36 points or 1.62%, with a trading value of THB 112.04 billion. The analyst stated that the decline was due to selling pressures from the electronics sector—led by DELTA—and the banking sector.
Furthermore, the market sentiment was also weighted by rising bond yields, particularly U.S. 30-Year Treasury Bond, after the Federal Reserve chair signalled unclear interest rates direction. However, market participants anticipated at least one hike.
Meanwhile, the escalated war in the Middle East has also pushed up the energy costs.
The Federal Reserve opted to keep borrowing costs unchanged following its July policy review, marking the second such session directed by the newly appointed Chairman, Kevin Warsh.
While the majority favored stability, the decision highlighted significant internal discord, with the committee split in a 9-3 vote. This came from the heads of the Cleveland, Dallas, and Minneapolis Federal Reserve banks, who advocated for a quarter-point increase.
South Korea’s KOSPI index has undergone a significant correction, falling roughly 40% from its June 22 peak and pushing the market into deeply oversold territory, according to JPMorgan, who deems it as an attractive value.
The investment bank highlights that the KOSPI now trades at around 5 times forward earnings, even after considering cyclical adjustments. Additionally, the market is valued at approximately 5 times estimated free cash flow—levels JPMorgan describes as “crisis-level” valuation. Despite very weak market sentiment, the bank suggests that Korean equities are now trading at historically cheap levels which could provide an appealing opportunity for long-term investors if market fundamentals stabilize.
